Kampala-The ongoing legal and regulatory reforms mostly in the oil and financial sectors are making it less risky to do business in Uganda, drawing investors’ attention to the country, according to a global risk survey released recently by global risk management Firm, AON.

The 2014 Political Risk Map shows Uganda has a lower risk rating of ‘Medium’, compared to neighbours Kenya, Tanzania, Rwanda all rated at ‘Medium-High risk’ and South Sudan rated at ‘Very High risk’.

“Uganda’s legal and regulatory risk is lower than that of peers and its recent energy sector legislation is a step in the right direction,” said Mr Maurice Amogola, the chief executive officer of AON Uganda.

However, Uganda continues to face high levels of political violence risk, which is exacerbated by instability in neighbouring eastern Democratic Republic of Congo and South Sudan.

According to AON, in East Africa, terrorism stands out as the predominant peril particularly after internationally high profile attack on the Westgate mall in Nairobi last year.

This has seen the interest of players in political risk covers increase especially among operators in the manufacturing sector, retail sector, banking and hospitality industry.

The report identifies massive investment opportunities in infrastructure, especially within the energy sphere. Another area with huge potential is agriculture, which can help reduce the risk of supply chain disruptions and food price

Mr Amogola says the lower political risk of doing business in Uganda is favourable for investors in terms of the insurance premium rates they incur.